Exam of Ocay (1st) Flashcards
This is a corporate organization that owns and controls the production of goods or services in at least one country other than its home country.
MNC
Is an organization or an individual that borrows money in financial institution.
LENDER
It describes the exchange of products (merchandise) and services (intangibles) across national borders.
INTERNATIONAL TRADE
One of the UM‟s core values that states the university believe in the concept that “the whole is greater than the sum of its parts” and value the collective effort of every stakeholder through synergy, cooperation, collaboration and „esprit de corps‟ as it is integral to the success of the institution
TEAMWOK
This is a group or a system of interconnected people or thing.
NETWORK
Is the money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt or loan.
INTEREST
One of the UM‟s core values that states the university is committed to world-class customer service and quality as we excel for the mutual success of our stakeholders.
EXCELLENCE
The inner circle of the UM logo has the Latin words “Vincit Omnia Veritas” which means
TRUTH CONQUERS ALL
This conflict of goals between a firm’s managers and shareholders is often referred to?
AGENCY PROBLEM
An act of lending something to someone or to some establishment.
LOAN
What is the firm’s potential loss or failure from poorly developed or executed business strategies, tactics, or procedures?
COMMERCIAL RISK
It refers to the risk of adverse fluctuations in exchange rates. Fluctuation is common for exchange rate, which is the value of one currency in terms of another
CURRENCY RISK
This obligates a firm to provide a specialized sales or service strategy, support assistance, and possibly an initial investment in the franchise in exchange for periodic fees
FRANCHISING
These are a form of debt that the issuing entity promises to repay at some point in the future
BONDS
According to this theory, firms become established in the home market as a result of some perceived advantage over existing competitors, such as a need by the market for at least one more supplier of the product
PRODUCT CYCLE THEORY
This represents a summary of the flow of funds resulting from the sale of assets between one specified country and all other countries over a specified period of time
CAPITAL ACCOUNT
What is the activity which the sale of products or services to customers located abroad from a base in the home country or a third country?
EXCHANGE
This control attempts to enact changes in a poorly performing MNC, such as the removal of high-level managers or even board members
CORPORATE CONTROL
This obligates a firm to provide its technology (copyrights, patents, trademarks, or trade names) in exchange for fees or some other specified benefits.
LICENSING
This control can oversee the subsidiary decisions to check whether the subsidiary managers are satisfying the MNC‟s goals and implement compensation plans that reward the subsidiary managers who satisfy the MNC‟s goals.
PARENT CONTROL
What are the public sector that is also active in international business as suppliers, buyers, and regulators?
GOVERNMENT
A sum of money paid into bank or building society account.
DEPOSIT
These are shares in the ownership of a business
STOCKS
These are tangible merchandise such as clothing, computers, and motor vehicle.
PRODUCTS
This is a summary of transactions between domestic and foreign residents for a specific country over a specified period of time.
BALANCE OF PAYMENTS
What is the vision of University of Mindanao?
By 2022, a globally recognized institution providing quality, affordable and open education.
Which theory can affect MNCS management due to immobability of resources?
IMPERFECT
The commonly accepted goal of an MNC is
TO MAXIMIZE SHAREHOLDER WEALTH
This can be trough of as the margin to which creditors are covered if the bank would liquidate its assets
CAPITAL
This course includes review of basic corporate finance terms, issues on international trade and multinationals, and basics of electronic banking
GLOBAL FINANCE
This represents transactions involving long-term financial assets (such as stocks and bonds) between countries that do not affect the transfer of control.
PORTFOLIO INVESTMENT
What method which the MNCs entails minimal risk because the firm does not place any of its capital at risk. If the firm experiences a decline in its exporting or importing, it can normally reduce or discontinue this part of its business at a low cost?
INTERNATIONAL TRADE
What are deeds, performances, or efforts performed directly by people working in banks, consulting firms, hotels, construction companies, retailers, and countless other firms in the services sector?
SERVICES
What is a firm or an individual with special expertise in banking, legal advice, customs clearance, or related support services that helps focal firms perform international business transactions?
FACILITATOR
These are all the financial resources of the firm, such as cash in hand, bank balance, account receivable.
FUNDS
Who is the initiator of an international business transaction; it conceives, designs, and produces offerings intended for consumption by customers worldwide?
FOCAL FIRM
What is a venture that is jointly owned and operated by two or more firms?
JOINT VENTURE
It refers to the tendency of companies to deepen their international business activities systematically. It has led to widespread diffusion of products, technology, and knowledge worldwide
INTERNATIONALIZATION
A third component of the financial account which represents transactions involving short-term financial assets (such as money market securities) between countries.
OTHER CAPITAL INVESTMENT
This represents the investment in fixed assets in foreign countries that can be used to conduct business operations
DIRECT FOREIGN INVESTMENT
